Dubai index drops 4.1 pct on Dubai World debt report

DUBAI Feb 14 (Reuters) - Dubai's main index .DFMGI sagged 4.1 percent on Sunday as investors reacted with concern to a report that Dubai World [DBWLD.UL] may only offer 60 cents on the dollar to creditors. A spokeswoman for the Dubai government said no restructuring proposal had yet been made to lenders.

Dow Jones, citing two unnamed bankers, said Dubai World may offer 60 cents on the dollar, in a plan that may come with a sovereign guarantee but does not pay interest.

An alternate plan may see creditors get full repayment, including 40 percent of their Dubai World debt in the form of assets in property developer Nakheel, with no government guarantee and also over seven years, the report said.

(Reporting by Matt Smith; Editing by Amran Abocar)